Bitcoin has been hitting new highs daily, and hence the market cap of the currency has been rising substantially. The digital coin has recently become the 6th largest currency in the world. And now its value is more than JP Morgan, Bank of America and Citigroup combined. If you consider the 52-week high and 52-week low, Bitcoin’s market has increased by over 12 times in the last year. That is a huge increase and seems to be an apparent reason why companies are heavily investing in the cryptocurrency.
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Bitcoin’s adoption rate hasn’t caught the speed yet!
You might be thinking that the huge price increase of the cryptocurrency is because of the quick adoption. Well, yes for sure people are more open to investing in cryptocurrency than they were a year back, and yes many institutions are investing a vast amount of money in Bitcoin, but no the adoption isn’t fast yet. Daniel Pinto, the chief operating officer of JPMorgan, pointed this out and said, “The demand isn’t there yet, but I’m sure it will be at some point.” This was when the employees of the bank were asking about the bank’s involvement in Bitcoin.
The point is investing in a currency doesn’t make it an adoption actually. But when these investors can directly pay Bitcoins to make payments and purchase things, we can call it widescale acceptance. But yes the fact that JP Morgan analyst said that they believe that the demand will be there soon is a good enough reason to treat Bitcoin as a viable asset. Daniel also said that if Bitcoin gets regulated, its acceptance will get even faster. And many notable exchanges and big retail investors will also step into the game.
Race to the moon!
Once everyone gets a glimpse of the future of cryptocurrency, the race to the moon will begin. I am sure if that happens, no one can stop Bitcoin from reaching $100,000 by the end of 2021. Its already halfway there and so it is just a matter of time now. Presently the all-time-high of the currency is almost $49,000, and it’s trading at $48,000 at the time of writing this article. Twitter now plans on making a Bitcoin fund for India because of the ban that’s being speculated. At the same time, Apple has also added the crypto option in their Apple pay wallet. When Elon says Dogecoin can be the future currency of Earth, I have my doubts, and I know its a joke. But Bitcoin can definitely be the future currency of the planet.
What are your thoughts on the fact that Bitcoin’s market is more than the entire value of JP Morgan, Bank of Morgan and Citibank combined? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
Also Read: ARK Invest bought 2.14 million shares of GBTC in Q4, 2020
